India Eco Summit: Bajaj Fin to enter construction equip financing

Financial services company Bajaj Finserv today said it will enter the construction equipment financing by next year to tap the potential offered by the infrastructure sector.

"We will be getting into new vertical of financing, that of the construction equipment. This is a huge space with opportunities of about Rs 10,000 crore and is still growing," Baja Finserv Managing Director Sanjiv Bajaj told reporters on the sidelines of India Economic Summit here.

He said the company's loan book is currently at Rs 3,000 crore and it has been growing at 30-35 per cent in the last 18 months.

"We expect the same growth in the next year also," he said, adding 30-40 per cent of the loan amount were from auto financing and the rest from consumer durables, and other financing verticals.

Asked if the company would diversify auto financing beyond Bajaj's vehicles he replied in the negative.

"There is no plan to finance other manufacturer's vehicles as it is unique to our group's business," he said, adding that 25-30 per cent of Bajaj Auto's vehicles sales have been financed by Baja Finserv.

He also said the company is not planning to raise any funds at the moment.